IT sector in 2015: Startups, Digital India to Make in India, top 10 things to know

IT sector in 2015: Startups, Digital India to Make in India, top 10 things to know

Tue December 29 2015, 1:29 pm

In India, government's Digital India, Make in India initiatives dominated the Indian IT industry in 2015 that also boosted the startup revolution in the country. In fact, "The surge in startups and Digital India plan have redefined the rules of the game," industry body Nasscom president R. Chandrashekhar told said. Here is all you wanted to know about the IT sector in India in 10 points:

2. Start-up India: PM Narendra Modi announced a self-certification scheme in respect of 9 labour and environment laws and said there will be no inspection during the first three years of launch of the startup. (Reuters photo)

4. Budget 2016 expectations: In addition, Saurabh said, “We also hope that the government would end one anomaly and that is of treating unfavourably investments by AIFs and Angel Groups in unlisted companies.” Here is the 6-point add-on list: a. Today, capital gains tax on investments in publicly listed companies are treated as long term capital gains and taxed at 0% if held for over one year and as short term if held for less than a year and taxed at 15%( plus STT in both cases); b. But investments in unlisted companies or start ups is taxed at 33% for short term and at 20% for long term capital gains, with the holding period for long term capital gains as 3 Years; c. These investments in unlisted companies take more risks, are illiquid and create new ventures; d. They should be treated more favourably or at least on par with trading shares on the stock exchange; e. This should be allowed at least for investments made by SEBI registered, widely held AIF Category 1 and Angel Funds; f. The AIFs can collect STT like stock exchanges on such transactions. (Reuters)

5. Ratan Tata: The government does need to step in and support (the startups). The question is how they will support and how justifiably they may take decision on whom they support and whom they turn down," he said in response to a query.(Reuters)

Prime Minister Narendra Modi will launch the programme on January 16 to benefit technology-centric startups in sectors like healthcare, education and others.(Reuters)

7. IT sector in India, 2015: "We also see a huge potential for our industry from the government's Make in India programme, as manufacturing of industrial, consumer and electronics goods will require ICT solutions to operate and deliver them," said Krishna Prasad, an independent software developer for vendors. (Reuters photo)

9. IT sector in India, 2015: According to a Nasscom projection, IT exports will grow 12-14 percent to reach $110-112 billion and the domestic market by 15-17 percent to touch $55-57 billion by March 31, 2016. Currency volatility, however, impacted the operating margins of exporting firms, including the global software majors. (Reuters photo)

Infosys Q1 results: The IT major posted 4.47 per cent fall in consolidated net profit figures at Rs 3,436 crore for the first quarter ended June 30, 2016 against Rs 3597 crore in the sequential quarter ended March 31, 2016. (Photo: Reuters)

10. IT sector in India, 2015: "The export growth rate continues in double-digits as in 2014, though firms are under pressure to deliver more value in terms of business and transformation," Chandrashekhar affirmed. On the outlook for the industry in 2016, the former telecom secretary-turned industry representative said the projection for 2016-17 would be revealed in February and the growth would be on track as in 2015. IT sector in India, 2015 - Highlights: * Start-ups and Digital India dominated IT industry landscape; * Software services and exports to post 12-14 percent growth; * Geeks develop new applications for internet users & verticals; * Nasscom to incubate 10,000 starts-ups by 2020; * Karnataka declares start-up policy, sets up two warehouses; * Digital India will trigger start-up boom and create jobs; * Start-ups are risk prone and many are bound to fail; * Digital India to benefit traditional and new-age companies; * IT bellwethers spur export growth despite cuts in tech spend; * Currency volatility impacts operating margins of export firms.

BLUE-PRINT FOR START-UP NATION ?
On 27 Dec 2015 , in his " Man Ki Baat " address , with reference to planned launch of " Start Up India , Stand Up India " on 16 Jan , Shri Narendra Modi said :
# DEFINITION OF A START UP
" If a youth conceives a new idea that can give employment to poor, that can be called a Start Up .
# ACTION NEEDED
The banks should help these youth and encourage them
# INNOVATION CULTURE
Be it manufacturing , service sector or agriculture, this new initiative will bring in new ideas, new ways , and new innovations
# SCOPE
The scheme should reach out to the last person in the country
# REACH
They are made for the poorest of the poor "
No doubt , a great initiative
# QUESTION
When finally announced on 16 Jan,will this initiative be BOLD enough to make a difference ?
# ANSWER
It can be, if the concerned Minister will incorporate following suggestions sent , through
> Blogs
* A New Economic Order / Start Up Act - 2015 ( 12 Sept 2015 )
* Create Wealth to Create Jobs ( 26 Feb 2014 )
* Get Out of the Way ( 02 Dec 2015 )
But , if the concerned Minister stays paralyzed by " Fear of Failure " , or " Fear of Finance Ministry " , then expect a damp squib !
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hemen parekh
28 Dec 2015